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Unveiling the Potential: The Case for Investing in the Global X US Infrastructure Development ETF

In the intricate landscape of market dynamics, the Global X US Infrastructure Development ETF (PAVE) emerges as a formidable contender, showcasing a robust trajectory without any sell signals according to the latest chart analyses.

Over recent years, PAVE has displayed remarkable resilience, mirroring the performance of the S&P 500 in 2023 while positioning itself for potentially substantial outperformance in the coming months. Comprised mainly of industrial and materials stocks, PAVE strategically aligns with ongoing initiatives aimed at fortifying and enriching U.S. infrastructure.

us global infrastructure etf investment

A steadfast uptrend defines PAVE's long-term trajectory, with momentum exhibiting signs of acceleration across various timeframes. Notably, the weekly MACD underscores this surge in momentum through expanding histogram bars, serving as a dependable indicator of intermediate-term momentum.

Insights and Considerations for Investors

Recent market movements have witnessed PAVE overcoming both short and long-term overbought signals, paving the way for its upward trajectory to persist. Despite a commendable rally in recent months, the absence of resistance on the chart, coupled with the absence of sell signals, suggests further potential upside.

Technically, price is trending inside a rising channel with an intermediate-term measured move projection points towards a target nearing 39.57, and a more aggressive long-term projection setting sights around 44. Initial support finds definition in previous resistance levels from December, hovering around the 35 level. Additionally, the 50-day and 21-day moving averages serve as pivotal support indicators, evolving over time to potentially function as stop-loss thresholds.

PAVE raisin channel bullish trend
Image courtesy of TC2000.com

Relative to its peers, PAVE has consistently outperformed since 2020, with its ratio versus the SPX reflecting a sustained uptrend. Following a consolidation phase in 2023, momentum has been reignited post-breakout from a triangle formation in December, bolstering expectations for continued outperformance in the months ahead.


Conclusion

In conclusion, the Global X U.S Infrastructure Development ETF (PAVE) emerges as a compelling choice, boasting a track record of robust performance and promising returns. With a strategic focus on U.S. infrastructure, PAVE's portfolio primarily weighted towards industrials, followed by materials and utilities. Despite a relatively higher expense ratio and modest dividend yield, PAVE remains fairly valued compared to similar ETFs.

For investors seeking deeper insights into market trends and technical analysis, access to research from Fairlead Strategies provides an invaluable resource, empowering informed decision-making in the complex landscape of investment strategies.


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